TrueConf Increases Sales While Russian Video Conferencing Market Declines in 2013

Alina Krukova
April 29, 2014
Alina Krukova
Categories: News

We are presenting you the results of our annual videoconferencing market research and the results of our work in 2013.

TrueConf Increases Sales While Russian Video Conferencing Market Declines in 2013 1

According to the annual research by TrueConf, videoconferencing market in Russia has decreased by 10% as compared to 2012, and amounted
$86* million in 2013. Experts note that this tendency can be observed on the global market where the share of video conferencing infrastructure
equipment revenue of leading vendors is decreasing.

In our opinion, the decline of local market should not be seen as a negative signal since the number of users and conference rooms connected
to corporate video conferencing systems is still growing.

The decrease in the market is most likely related to the change of prices for video conferencing projects. Video conferencing is getting
more popular and widespread. Expensive MCU are successfully substituted by software solutions that support scalable video coding (SVC).
One of the factors supporting this is the 20% increase in TrueConf’s YOY revenue in Russian Federation during 2013 from software video
conferencing licenses.

One more positive sign for TrueConf was the increase in average size of implementations of their videoconferencing systems from 24.5
points in 2012 to 33.6 points in 2013. It is also noteworthy that the hosted implementation has been chosen by less than 5% of TrueConf’s
customers during the 3 years. Russian customers prefer premise-based solutions for videoconferencing.

It was a pleasant surprise for us that 35% of users in 2012 who purchased a one-year TrueConf license extension bought a lifetime license
in 2013. This shows their trust and desire to use our products as long term solutions.

In the previous year, the major TrueConf customers were the public sector (regional and municipal) (17% of sales), the financial sector
(finance, credit, insurance) (14%), education (13%), and energy companies (10%).

Significantly, the share of videoconferencing use in education increased more than twice as compared with 2012 (from 7% to 13%). It is the
result of increasing popularity of videoconferencing solutions for remote learning.

TrueConf Increases Sales While Russian Video Conferencing Market Declines in 2013 2

* In assessing the volume of IT market of the Russian Federation, the company relied on data provided by Wainhouse Research, IDC and
Forrester Research analyst agencies. The market share on video conferencing market was identified on the basis of their own data, as well
as on the information received from partners, distributors and system integrators in the field of video conferencing in the Russian Federation.

Feel free to contact us if you have any questions!